CANTON, Ohio, March 18, 2014 /PRNewswire/ -- The Timken Company (NYSE: TKR; www.timken.com) has established a joint venture (JV) with European Bearing Corporation (EPK) aimed at serving industrial markets in Russia and the broader Commonwealth of Independent States (CIS). The JV will leverage EPK's position as a leading domestic manufacturer in Russia and the CIS with The Timken Company's strength as a key global bearing designer and manufacturer. The JV, which is contingent upon various regulatory approvals and other customary conditions, will operate as EPK-Timken Bearing Company.
"This agreement represents a coordinated commitment to provide industrial customers with a single source of bearings locally that deliver the most reliable performance to meet their current and future needs," said Alexander Moskalenko, chief executive officer of EPK.
As part of the JV, Timken and EPK expect to present a consolidated approach to the marketplace, with plans to combine their industrial sales teams in that area and build a new manufacturing facility in a yet-to-be named location to produce large bore industrial bearings. Construction is expected to start in 2015, with production commencing 24 to 36 months thereafter.
In driving its strategy to grow around the world and diversify its product portfolio, Timken has entered into agreements with strategic partners with the particular goal of enhancing the company's presence and market position in important emerging economies.
"Timken continues to pursue growth opportunities globally, investing in geographies where critical market sectors like energy and infrastructure development are expected to generate demand for Timken premium bearings and related products," said Christopher Coughlin, Timken group president. "We've been conducting business in this area of the world for decades and directly supporting customers in Russia for more than 20 years. Together, we expect Timken and EPK will be able to provide unparalleled capabilities to industrial customers in Russia and the broader CIS region, which continue to be strategic markets for us."
About EPK
OAO EPK (www.epkgroup.ru) is the largest bearing manufacturer in the CIS region that produces bearings for all of the mechanical engineering industries. The company represents the Russian bearing industry in the International Standards Organization (ISO). On 31 May, 2013, Standard & Poor's awarded EPK a "BB" long-term corporate credit rating, with a "stable" forecast.
Today EPK comprises OAO EPK Moscow, OAO EPK Volzhskiy, OAO EPK Saratov, OAO EPK Samara, AO Stepnogorsk Bearing Plant (Kazakhstan), EPK-Brenco (a Joint Venture with Amsted Rail), as well as EPK Engineering Center and OOO EPK Trade House with branches in Russia and abroad. EPK employs 11,130 people, with 2013 revenue under IFRS (International Financial Reporting Standards) of USD $452 million.
About The Timken Company
The Timken Company (NYSE: TKR; www.timken.com), a global bearing designer and manufacturer, applies its deep knowledge of materials, friction management and power transmission to improve the reliability and efficiency of industrial machinery and equipment all around the world. The company engineers, manufactures and markets mechanical components and high-performance steel. Timken® bearings, engineered steel bars and tubes—as well as transmissions, gearboxes, chain, related products and services—support diversified markets worldwide. With sales of $4.3 billion in 2013 and approximately 19,000 people operating from 28 countries, Timken makes the world more productive and keeps industry in motion.
Media Contact:
Pat Carlson Burnham
Global Media Relations
1835 Dueber Avenue, S.W.
Canton, OH 44706-0927 U.S.A.
Telephone: (330)471-3514
pat.carlson@timken.com
Investor Contact:
Steve Tschiegg
Director – Capital Markets & Investor Relations
1835 Dueber Avenue, S.W.
Canton, OH 44706-0927 U.S.A.
Telephone: (330)471-7446
steve.tschiegg@timken.com
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SOURCE The Timken Company